Basic HTML Version

|  | Table of Contents |  | View Full Version

Page 10 - The Indian EYE 021326
P. 10

    OPINION                                                            FEBRUARY 13, 2026       |  The Indian Eye 10

                         US–India Tariff Reset at 18%:

             Trade, Trust, and the New Grammar

                                                   of Global Power

                                              gates between India and the United  consequential:  a  recalibration  of   currency  stress,  and  deep  anxiety
                                              States over recent months played an  economic trust between the world’s   among millions of workers and small
                                              important  role  in  building  the  trust  two largest democracies at a moment   businesses  tied  to  global  trade.  By
                                              and  momentum  necessary  for  this  when  global  trade,  geopolitics,  and   late  2025,  it  had  become  clear  that
                                              agreement. Both leaders, he added,  energy security are being fundamen-  prolonged escalation would produce
                                              are looking forward to visiting each  tally rewritten.              no winners—only economic damage
                                              other’s  countries  in  the  near  future   In an era marked by war in Eu-  on both sides. The decision to reset
                                              — a signal of the continuing commit-  rope, fragmentation of supply chains,   tariffs  to  18  percent  therefore  rep-
                                              ment to deepen bilateral engagement  rising  protectionism,  and  deepen-  resents a deliberate shift away from
                                              at the highest level.             ing mistrust between major powers,   confrontation  and  toward  engage-
                                                  Special recognition is also due to                              ment.  It signals an acknowledgment
                                              key Indian leadership and diplomatic   “This agreement is not just   that economic interdependence between
                      H. S. PANASER           architects  of  this  breakthrough.  Dr.                            the United States and India is too deep,
                                              S. Jaishankar, External Affairs Min- about tariffs—it is about trust,   and too strategically important, to be
                  he  recent  announcement  by   ister of India, has been instrumental   alignment, and the evolving   held hostage  to  short-term  trade  dis-
                  the  United  States  to  reduce   in articulating India’s economic pri-                         putes.
            Ttariffs on Indian goods to 18%   orities  and  navigating  complex  geo- architecture of global trade    Trade as a Mirror of Geopolitics
            marks a significant and welcome de-  political headwinds with nuance and   among democracies.”            Yet  this  agreement  cannot  be
            velopment in global trade, economic   steadiness. Equally vital has been the                          separated  from  the  larger  geopo-
            stability,  and  bilateral  relations  be-  contribution  of  Mr. Piyush Goyal,                       litical  landscape.  The  world  today
            tween the world’s two largest democ-  Minister of Commerce and Industry,  trade agreements no longer operate   is not divided merely between mar-
            racies. At a time when global supply   whose  sustained  engagement  with  in  isolation.  They  have  become  in-  kets and manufacturers, but between
            chains  remain  fragile,  geopolitical   US  counterparts  and  private  sector  struments  of  diplomacy,  levers  of   competing  visions  of  global  order.
            tensions  persist,  and  economic  na-  stakeholders  helped  align  commer-  geopolitical  alignment,  and  signals   Energy  security,  defense  alliances,
            tionalism is on the rise, this decision   cial  interests  with  broader  strategic  of  long-term  intent.  The  US–India   technology control, and supply-chain
            signals  pragmatism,  dialogue,  and   objectives — making the ground for  tariff reset must therefore be under-  resilience  have  become  inseparable
            strategic maturity.               agreement far more fertile.       stood  not  simply  as  a  commercial   from trade policy. At the heart of the
                This  moment  deserves  recogni-  On the diplomatic front, the tire-  concession, but as a strategic decision   US–India agreement lies a strategic
            tion  and  appreciation  for  the  lead-  less  efforts  of  India’s Ambassador  shaped by global realities and shared   understanding that goes beyond tar-
            ership  of  both  nations,  and  for  the   to the United States, Vinay Mohan  democratic interests. For global busi-  iffs. The reduction is closely linked to
            tireless work of institutions and dip-  Kwatra, and his team in Washington,  nesses,  investors,  and  policymakers,   India’s commitment to recalibrate its
            lomats who made this possible.    DC, were foundational in maintain-  this move brings relief, predictability,   energy  sourcing,  particularly  its  re-
                In a live televised discussion on   ing dialogue and advancing consen-  and renewed opportunity. For India   liance on discounted Russian crude
            NDTV  that  coincided  with  the  an-  sus  in  difficult  moments.  And  at  a  and  the  United  States,  it  restores   oil  that  expanded  significantly  after
            nouncement, US Ambassador to In-  critical strategic nexus in the United  momentum to a relationship that has   2022. For Washington, targeting Rus-
            dia Sergio Gor — who has been at the   States, Consul General Ambassador   grown indispensable—economically,   sian oil revenues is viewed as a critical
            forefront of diplomatic engagement   B Pradhan in New York,  working  strategically,  and  morally—over  the   pressure point in efforts to influence
            and  trade  dialogue  —  emphasized   closely with his team, has been mak-  last two decades.         the trajectory of the Ukraine conflict.
            the  depth  of  the  personal  rapport   ing  impactful  contributions  under   From Escalation to Engagement  For  India,  the  challenge  has  been
            between  Prime Minister Narendra   the radar of public attention — a re-  The  months  leading  up  to  this   to  balance  ethical,  diplomatic,  and
            Modi and President Donald Trump   minder that cities like New York are  announcement  were  marked  by   economic considerations while safe-
            that helped bring this understanding   vital hubs not just for commerce but  tension  and  uncertainty.  Successive   guarding  domestic  energy  security.
            to  fruition.  Ambassador  Gor  high-  for  shaping  the  lived  texture  of  in-  rounds  of  tariff  escalation—culmi-  The  agreement  reflects  a  care-
            lighted that the 30-minute conversa-  ter-country relations.        nating in duties of up to 50 percent   fully  negotiated  compromise.  India
            tion between the two leaders earlier   Appreciating  Leadership and  on  key  Indian  exports—threatened   agrees to pivot away from Russian oil
            underscored  not  only  progress  on   Institutions on Both Sides   to disrupt supply chains, undermine   and increase imports of US energy,
            trade  but  the  warmth  and  mutual   This  breakthrough  reflects  sus-  competitiveness,  and  erode  trust.   technology,  and  agricultural  prod-
            respect  that  define  the  relationship   tained engagement and coordination  Sectors such as textiles, pharmaceu-  ucts. In return, the United States re-
            between the two nations’ leadership,   across governments and institutions.  ticals,  engineering  goods,  and  gems   stores  market  access  and  economic
            describing  their  ties  as  “real”  and   The  announcement  that  the  and  jewelry  faced  the  prospect  of   stability for Indian exporters. This is
            grounded in shared strategic purpose   United  States  will  reduce  tariffs  on  losing access to their most important   not coercion, nor is it capitulation. It
            and  democratic  values.    He  further   Indian goods to 18 percent may ap-  export market.          is a recognition that in today’s world,
            noted that the large number of visits   pear,  at  first  glance,  as  a  technical   These  pressures  were  not  ab-  strategic  alignment  often  takes  the
            and  exchanges  by  elected  represen-  adjustment in trade policy. In reali-  stract.  They  translated  into  falling   form of economic choices.
            tatives,  business  leaders,  and  dele-  ty, it represents something far more  export  orders,  market  volatility,   Continued on next page... >>

                                                                   www.TheIndianEYE.com

| 5 6 7 8 9 10 11 12 13 14 15 |